Advisors who figure out how best to harness artificial intelligence, marrying the technology to the value of a human financial advisor, are the most likely to thrive in coming years, top Schwab leaders suggested this week.
“There's no question this will drive efficiency in all of our lives, but I think the more powerful question is how is AI going to change how we engage clients five years from now?,” Rick Wurster, Schwab's president and CEO, said at the company’s IMPACT conference in Denver.
Wurster noted that AI already is making the company’s own businesses more efficient.
“It's quite possible that there are AI avatars that are built that can provide a lot of the capabilities that an RIA can provide through the use of AI,” he told advisors. “I think it's important that we recognize that and lean in to the value that you all bring, of the combination of people and technology, because I think that's going to be the winning combination.”
It’s important to “keep an eye on how AI pops up and how this begins to serve clients in a different way, and potentially reaches a new audience that couldn't be reached in a scalable way through the advisor model,” the CEO added.
AI will do more than change advisors’ workflows, according to Jon Beatty, head of Schwab Advisor Services.
“It will fundamentally change how you run your businesses and serve your clients. Sure, we know AI will drive operational efficiencies and reduce friction in the back office, and many of you are already ahead there. Our own research shows that 50% of RIA firms today are already leveraging AI tools,” Beatty said.
“But the real opportunity is bigger. AI has opened a new competitive frontier. It goes without saying, those that leverage AI will sharpen their competitive edge. The firms that pull ahead won't just automate tasks. They will unlock new insights and new strategies quickly. It will help them anticipate risks and see opportunities before others, make smarter choices, better decisions,” he added.
“And of course, all of this has to be balanced with what has set your profession apart — high touch, human, trusted relationships,” Beatty said.
A recent Schwab Advisor Services independent advisor study showed that 57% of firms already use AI and that 70% expect to fully embed the technology into their businesses in the next five years. Top uses now are research and analysis, client communication and document creation, the study found.
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